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KPMG implements plan to compensate current and former employees for unpaid overtime

Crawford Class Action Services retained to administer plan
TORONTO, Feb. 19 /CNW/ - KPMG LLP (Canada) today announced that it has
begun to implement a plan to redress employees for unpaid overtime.
In September 2007 a class action for unpaid overtime was filed against
KPMG on behalf of former employees. KPMG immediately began a thorough
investigation and has now developed an Overtime Redress Plan to provide
compensation to all eligible employees as soon as possible.
Under the terms of the plan, KPMG intends to ensure that all its eligible
current and former employees are fully and fairly compensated, according to
the relevant provincial laws, for all overtime since January 1, 2000 that has
been determined to have been earned but unpaid.
The KPMG Overtime Redress Plan will be administered by an independent
third party, Crawford Class Action Services (Canada), which has an
international reputation for managing redress plans. Crawford will notify
current and former employees about the Plan through individual letters and
advertisements in Canadian national newspapers.
"At the time we learned of the allegations in the class action we
promised a thorough review of our work practices," said Bill MacKinnon, Chief
Executive Officer, KPMG. "The Overtime Redress Plan directly and fairly
addresses any past concerns about unpaid overtime. We estimate the total
amount of the payout from the Plan will be less than $10 million."
"We very much regret that we did not pay overtime when it was earned by
current and former employees," added MacKinnon. "While this was an error of
omission, not commission, it should not have happened. The principles of the
Plan will be reflected in all KPMG's overtime remuneration in the future."
It is KPMG's view that the Overtime Redress Plan is the preferred method
of dealing with overtime claims by both its current and former employees.
Implementing the plan now does not constitute an admission of liability. KPMG
reserves all of its rights to fully respond to any motions that may be brought
in the class action and to defend the class action.
About KPMG
KPMG LLP, a Canadian limited liability partnership established under the
laws of Ontario, is the Canadian member firm affiliated with KPMG
International, a global network of professional firms providing Audit, Tax,
and Advisory services. Member firms operate in 145 countries and have more
than 123,000 professionals working around the world.
The independent member firms of the KPMG network are affiliated with KPMG
International, a Swiss cooperative. Each KPMG firm is a legally distinct and
separate entity, and describes itself as such.